Fort Walton Beach — Comprehensive Financial Report September 30, 2015 — reading text

Projected salary at retirement is increased 20% to account for non-regular compensation. Valuations prior to October 1, 2013: 7.5% per year until the assumed retirement age. 88  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF CONTRIBUTIONS (UNAUDITED) – CONTINUED POLICE OFFICERS’ RETIREMENT FUND Cost-of-living increase: 3.00% per year beginning at retirement Payroll growth: None Actuarial value of Each year, the prior Actuarial Value of Assets is brought forward utilizing the assets: historical geometric 4-year average Market Value return. It is possible that over time this technique will produce an insignificant bias above or below Market Value Disability rates: See table below: Other Information: Termination and Disability Rate Table % Terminating % Becoming Disabled Age During the Year During the Year 20 10.63% 0.14% 30 9.60% 0.18% 40 6.90% 0.30% 50 3.40% 1.00% 89  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE SCHEDULE OF CONTRIBUTIONS (UNAUDITED) FIREFIGHTERS’ RETIREMENT FUND Valuation Date: October 1, 2013 Notes: Actuarially determined contribution rates are calculated as of October 1, which is two year(s) prior to the end of the fiscal year in which contributions are reported Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method: Entry Age Normal Actuarial Cost Method Amortization method: Level Percentage of Pay, Closed Remaining amortization period: 30 years Inflation: 3.0% Mortality: RP-2000 Combined Healthy Table. Set forward 5 years for Disability Retirees. Based on a study of over 650 public safety funds, this table reflects a 10% margin for future mortality improvements. Interest rate: 8.00% per year compounded annually, net of investment related expenses Retirement age: Earlier of Age 55 and 10 years of service or 25 years of service, regardless of age. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year Early retirement: Commencing with the earliest Early Retirement Age (45), Members are assumed to retire with an immediate subsidized benefit at the rate of 3.00% per year Disability rates: See table below Termination rates: See table below Salary increases: 6.50% per year until the assumed retirement age Cost-of-living increase: 3.00% per year beginning at age 58 Payroll increase: 3.00% per year Actuarial value of Each year, the prior Actuarial Value of Assets is brought forward utilizing the assets: historical geometric 4-year average Market Value return. It is possible that over time this technique will produce an insignificant bias above or below Market Value Other Information: Termination and Disability Rate Table % Terminating % Becoming Disabled Age During the Year During the Year 20 7.90% 0.14% 30 7.20% 0.18% 40 5.20% 0.30% 50 2.60% 1.00% 90  CITY OF FORT WALTON BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION OTHER POST-EMPLOYMENT BENEFITS SCHEDULE OF FUNDING PROGRESS (UNAUDITED) Accrued Actuarial Liability UAAL as Value of (AAL) - Unfunded Annual % of Actuarial Valuation Assets Entry Age AAL (UAAL) Percentage Covered Payroll Date (a) (b) (b-a) Funded Payroll (c) [c/(b-a)] October 1, 2014 N/A $ 4,437,530 $ 4,437,530 0.00% $ 7,902,214 56.16% October 1, 2013 N/A N/A N/A N/A N/A N/A October 1, 2012 N/A 5,651,699 $ 5,651,699 0.00% 7,300,258 77.42% 91  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2015 Special Revenue Funds Beal Law Memorial Total Law Enforcement Florida Community Cemetery Nonmajor Enforcement Trust Building Development Perpetual Governmental Trust Training Code Block Grant Care Debt Service Funds ASSETS Cash and cash equivalents $ 250,835 $ 10,962 $ 288,859 $ - $ 32,584 $ - $ 583,240 Investments - - - - 2,229,208 - 2,229,208 Receivables - - - - 178 - 178 Due from other governments 4,321 - - 22,016 - - 26,337 Cash and cash equivalents - restricted - - - - - 25,449 25,449 TOTAL ASSETS $ 255,156 $ 10,962 $ 288,859 $ 22,016 $ 2,261,970 $ 25,449 $ 2,864,412 LIABILITIES Accounts payable $ 29,840 $ - $ 845 $ 12,371 $ 2,214 $ - $ 45,270 Accrued liabilities 2,532 - 14,135 - - - 16,667 Due to other funds - - - 5,582 - - 5,582 Total liabilities 32,372 - 14,980 17,953 2,214 - 67,519 FUND BALANCE Restricted 222,784 10,962 273,879 4,063 - 25,449 537,137 Committed - - - - 2,259,756 - 2,259,756 Total fund balance 222,784 10,962 273,879 4,063 2,259,756 25,449 2,796,893 TOTAL LIABILITIES AND FUND BALANCE $ 255,156 $ 10,962 $ 288,859 $ 22,016 $ 2,261,970 $ 25,449 $ 2,864,412 92  CITY OF FORT WALTON BEACH, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2015 Special Revenue Funds Beal Law Memorial Law Enforcement Florida Community Cemetery Total Nonmajor Enforcement Trust Building Development Perpetual Debt Governmental Trust Training Code Block Grant Care Service Funds REVENUES Permits and fees $ - $ - $ 325,538 $ - $ - $ - $ 325,538 Intergovernmental 23,730 - - 139,692 - - 163,422 Fines 12,746 6,755 - - - - 19,501 Miscellaneous 6,460 153 3,868 - 11,690 - 22,171 Total revenues 42,936 6,908 329,406 139,692 11,690 - 530,632 EXPENDITURES Current Public safety 87,955 6,422 311,032 - - - 405,409 Physical environment - - - - 11,077 - 11,077 Economic environment - - - 103,615 - - 103,615 Capital outlay 11,764 - 20,398 25,783 - - 57,945 Debt service Principal - - - - - 660,107 660,107 Interest - - - - - 344,544 344,544 Total expenditures 99,719 6,422 331,430 129,398 11,077 1,004,651 1,582,697 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (56,783) 486 (2,024) 10,294 613 (1,004,651) (1,052,065) OTHER FINANCING SOURCES (USES) Transfers in - - - -